AMT

EmbarrassedRole3299

Not really! When you sell the irs takes capital gains tax up to 20%, also niit of 3.8%, possibly amt, if you live in CA they want another 13.3%. This if you hold it for at least a year. If not the irs wants up to 37% ,along with 3.8%,AMT,CA wants 13.3%. That would be well over 50%.That doesn’t even count the higher IRMMA rate if you are on Medicare. All this nonsense adds upt to 55% or more. Did you say FREE MONEY?

ChairmanMeow1986

Look at thing though AMT (auction market theory). Understand Vanna-Volga Pricing.. Um, explore and learn before you expand is all I can add. Learn Risk and Smart Money Theory as well. Best winds.

Mountain_Fig_9253

AMT was a **very** early investor and they have a ton of debt on their balance sheet. They booked an enormous profit and are still carrying shares moving forward.

KissmySPAC

"The statement "Stock options are taxed when exercised. Stock compensation are taxed when received" is an overgeneralization, as the tax timing depends heavily on the specific type of compensation.  Stock Options The taxation of stock options is split into two main types:  Non-Qualified Stock Options (NSOs): These are generally taxed upon exercise. The difference between the stock's fair market value at exercise and the lower exercise price (the "bargain element") is treated as ordinary income and reported on your W-2. Incentive Stock Options (ISOs): These are generally not subject to regular income tax at exercise. However, the bargain element may trigger the Alternative Minimum Tax (AMT) in the year of exercise. The main tax event (for regular income tax purposes) occurs when you sell the shares. " Lolol

KissmySPAC

"The main type of stock options people are paid with are non-qualified stock options (NSOs), also known as non-statutory stock options." "Generally not a taxable event for regular income tax purposes at the time of exercise, though it may be subject to the Alternative Minimum Tax (AMT)." Wow, can't even get passed AI. Well don't Americans face AMT? No?

EmbarrassedRole3299

Not really. You also have niit tax of 3.8 percent and, if you live in CA, you pay another 13.4 percent. Not to mention AMT and possible IRMMA. That’s around 40 percent. So get your facts straight.

Vast_Cricket

There are other ways to get interest as income. I am in highest income tax state. 51% taxable bond or fixed income. 49% not taxable or AMT exempt. Rather than investment grade bond I buy close end financials paying me 8-11% taxable etfs.63% are from fianciak, 20% from industry, IT bonds and some convertible bonds. My accident owning Tesla a default convertible stock not able to pay interest offered me worthless Tesla common shares paid off. AGG, CALI are only some of the bonds I hold. The above is only a portion of total portfolio consists of stocks. It is used as hedge stocks.

BreakfastFriendly840

What really caused META stock to slide so much? Before you call me an idiot and say "Well, it was because of earnings", I know that, just hear me out. I am currently a graduate student studying accounting (with a focus on taxes) and have just completed a section in one of my courses on the provision for income taxes. What I don't understand is whether the dip is *purely* due to the reported EPS, which is obviously not reflective of the company's overall health when considering the financials. A one-time, non-cash expense from AMT deferred tax assets that won't be realized in the future is not a scary thing when you look at a company the size of META and understand that those DTAs could have been spread out over a decade or even longer. I have a small, but material to me, position in meta that I am unsure about, and want to know if I am missing something from someone who understands to other side of things better than me. If something else is going on, I want to understand and learn, thanks!

PudNickle

"We are surprised by the (U.S. Food & Drug Administration's) feedback, which is a drastic change from the guidance the FDA provided in November 2024," said Matt Kapusta, UniQure's CEO. UniQure said it plans to urgently interact with the FDA to find a path forward for the timely accelerated approval of AMT-130.

uplay2winthegame

And LTCG can trigger AMT. And some states tax it too. Can also phase out other deductions. I modeled it out for my situation and above small amount d I would net pay over 30%. So while LTCG is 15% the total tax cost is actually more than double that. It's crazy.

NewSpaceIsntNew

The perk of ISOs is the tax benefit/tax deferral option. Unlike RSUs you won’t be taxed upon vesting. You should not exercise them until either the date before they expire or you want to sell the shares (in which case it’s often smart to exercise them hold for a year to flip to long term capital gains vs short term) or as mentioned here, cashless exercise which saves you from tying up any liquidity - the exception being once you have more than say $125K in gains, at which point you’d stagger the exercise to avoid triggering AMT…as you can tell RSUs are the simpler approach next time you’re given this option….choosing ISOs is for people in either high tax brackets OR if they offer you a sizable multiple of ISOs vs RSUs…ISOs are technically worth $0 at the time of award (hypothetically…if you could exercise and sell on date of award….i know someone is going to make some snarky comment about black scholes and time value…but you get what I mean)

Matt2_ASC

I would need more time to really look at Google's tax position, but just looking quickly, they had a higher effective tax rate in 2024 than the AMT. So they may not be in the same position as Meta was, who had a lower effective tax rate than the AMT.

Stocks_N_Bondage

Today Opened Positions: - Calls: AMT CARR CDNS ECL GLW NXPI UNH - Puts: NEE UPS Subject to adjustment before close.

WickedSensitiveCrew

I been looking at multiple REIT sectors these include ARE, AMT, O, EQIX, and VICI which you mentioned.

greenpride32

>The odds of buying a small cap company and being able to hold it til it's a large cap is very low. Only about 10% of smallcap companies eventually reach the large cap universe. Flawed way of thinking. I only mentioned megacaps because everyone knows them. I also have 10x+ on SHOP ISRG MELI AMT to name a few. None of these would qualify as megacaps. Go and lookup TYL and FIX. You don't need megacap status to be a successful investment. You need consistent revenue and profit growth over time.

Impossible_Notice204

They litterally got multiple evaluations today that price the stock around $300 because of their AMT-130 Reward: $30 Risk: Overnight Gap of over $100 Worth? HELL FUCKING NO you'd have to be a fucking retard to short this befire FDA news

PercTrader

They just released positive data on their AMT-130 Huntingtons trial. Just be careful tmr it might run more but given this jump I think you might be wrong

Over-Computer-6464

That is an understatement. A friend exercised a lot of options as he changed jobs in early 1987, so he incurred a very large AMT related tax obligation. The. Black Monday happened on 10/19/87. He ended up having to do a cash out refinance de if his house to be able to pay his taxes.

oxydiethylamide

What does AMT mean in this case?

DranoTheCat

I was young and stupid when I did that, and paid the AMT two years in a row from Dec-Jan sales. God I was stupid.

rackoblack

Do you want a second job as a landlord? Equities - you want to be in equities. Add some REITs if you feel your RE exposure is too low. I did - we have EPR AMT CCI O STAG (CCI is a four star buy at Morningstar, O and STAG five stars).

Wolvshammy

What was explained to me was that the exercise IS the material event and therefore the gain is calculated on that date. By doing it the way they are doing it, they get to pay the gain as along term gain TODAY and no extra taxes are due as long as they hold another year AND converting shares to Buyers stock counts as part of their hold period. If they did it another way they’d have to claim as income and the tax bill would be…egregious. There is some AMT that is due as well, but that’s a rounding error compared to the cap gains.

bp000000

I’m the tax attorney this guy is referencing, and this guy is mischaracterizing my comment either because he doesn’t understand it or he is being disingenuous. Imagine having such an ego that you literally can’t respond to my comment either: (1) addressing the substance of my comment or (2) admitting you made a mistake. Instead you chose to make a second post citing hearsay from “your CPA” and a “fortune 100 exec”.  Wild behavior. And that was after I gave you a lot of credit for all the free diligence you’ve provided. Below is my comment, which as far as I know is still true. And note I did not state whether the sale is a good or a bad thing, all I stated was I didn’t think it was factually correct to say there were capital gains owed here; thus, your entire prior post, which relied on AI, was factually incorrect unless someone could address my comment and explain why I’m wrong. “Ok, well Grok isn't correct on this issue. Capital gains are not owed on unrealized gains and are only owed on the sale of shares. I am quite literally a tax attorney (albeit I do not specialize in this particular matter). Now, if this was an NSO, then it may be taxed as ordinary income or it may generate AMT, but in no way that I can see would the exercising of a stock option require Mr. Plassche to pay capital gains. Of course, this isn't legal advice. Also, I am very bullish on ELTP and appreciate all the free diligence you have provided. I just don’t think this is correct. Happy to admit if I’m wrong, though.”

bp000000

Ok, well Grok isn't correct on this issue. Capital gains are not owed on unrealized gains and are only owed on the sale of shares. I am quite literally a tax attorney (albeit I do not specialize in this particular matter). Now, if this was an NSO, then it may be taxed as ordinary income or it may generate AMT, but in no way that I can see would the exercising of a stock option require Mr. Plassche to pay capital gains. Of course, this isn't legal advice.

cdude

Yeah. But be wary of AMT if the unrealized gain is close to your current salary. The unrealized gain is taxable under the alternative minimum tax system, if it's more than your ordinary income tax, you'll pay the AMT. That's why ideally you should have been exercising every year.

Dangerous-Ad-5254

The interaction between buyers and sellers in the order book is literally what creates the price, is called order book dynamics or price discovery. The dynamics between price and volume make possible to read this dynamics. There are literally two entire volume based schools of analysis, VSA and AMT, besides Wyckoff that originate both of then. It is a backlooking metric? Yes, just like everything else. It make volume less efective? No.

therealjerseytom

Tax situation is just one of those things that's going to vary wildly depending on the person, the type of account(s) they hold, the assets they hold, how long they've held them, where they live, etc. For starters, let's assume you're a US-based investor and that you're investing for retirement with a tax-advantaged account (401k, IRA, etc.), while still in the wealth accumulation phase. That's probably the main focus for the majority of working Americans from their 20's through their 50's. In that situation, taxes aren't a concern. The activity within that account is sheltered from taxes. Buy, sell, re-invest, do whatever—it doesn't matter. *Outside of that specific easy situation*, figuring out tax implications can get really involved really quickly. Short-term and long-term capital gains, qualified versus non-qualified dividends, interest that may be taxable at the federal or state level, how all those things vary with your specific income level, whether you have to think about AMT, if you have paid any foreign tax, etc. And that's just for US investors. Globally, someone watching a YouTube video, who knows what the tax implications are in the country they're watching from? Investments and taxes certainly have overlap, but they're also their own unique beasts.

WingSpecialist4795

You can’t even access a Roth IRA if you make too much money. AMT sucks too. No write-offs. You essentially get penalized if you’re too successful which is insane…Meanwhile billionaires write everything off as a biz expense. Our tax system is whack…

jarMburger

Yeah, there’s lots of horror stories about AMT during the dot com era because ISO was the preferred way for equity compensation back then.

Z-Borst

Thank you for making me aware of AMT, you potentially saved me a lot of money. https://equitysimplified.com/amt-calculator/ To my question about capital gains, the guides online say the gains are from the strike price rather than price at exercise, which is counterintuitive, seems to defeat the purpose of accepting your bonus in options over RSUs. Oh well.

jarMburger

Exercise and hold could create a taxable event. Go search ISO AMT for more details. It depends on your income and other tax liability. If you exercise and sell immediately and assume sell price is higher than you excise cost, there will be tax consequences. How much you have to pay will depend on your other income and tax situation.

rackoblack

Are you *trying* to get extra tech heavy? VOO is already quite tech heav. I'd rather see any (or several) of * a REIT ETF (I have O, CCI, STAG, EPR and AMT - no residential mortgage stuff tho) * maybe 5% VXUS * some VYM But really just all in an index fund is fine, as well.

anonymous104180

What tools do you use to distinguish between real momentum and fake breakout? order block + volume for pressure? are you using AMT trading strategy?

Over-Computer-6464

>There are nuances based on whether it is RSUs, options, And there are even bigger nuances based on whether the options on non-qualified options or qualified incentive stock options. I >etc but they all pay tax at some level. I have several million dollars of shares from ISOs I exercised pre-IPO, and have never paid a penny of tax because at that time the bargain element gain on the common stock was,less than the AMT exemption. My exercise price was 1/10th what venture capitalists were paying for preferred stock in the initial funding rounds. Their preferred stock was converted 1 for 1 to comm9n stock ore-IPO. Those shares will likely get a step-up in cost basis upon my death and get sold with zero tax cost by my estate and children..

samuraisal

Yes. If OP is in the U.S., he/she may have triggered AMT with this sale(?)

Gotta_Gett

Dumb money move AMT's copper holdings just became 50% more valuable /s

Leroy--Brown

MSFT 7% V and MA. I put these in the same category, for obvious reasons. 8% PLTR 17% VOO and VTI 18% of my holdings. This used to be 60% of my portfolio but everything else grew so much faster. I'll need to renew my efforts at my old DCA strategy until this is back in the 50 or 60% range. WMT 6% My portfolio is admittedly in need of rebalancing. For example, I've held QCOM and AMT for quite a long time and I should sell off those positions and increase my position in VOO or VTI. Similarly I've opened small speculative positions in a wide variety of various stocks. Some of these are stagnant or haven't grown yet, and some of them have grown really well, and this growth has altered my ideal balance. The growth in MSFT and PLTR really altered my portfolio allocations My personal ideal balance for my portfolio is 60% VTI/VOO. 20% aggressive growth in tech/finance. 20% defensive stocks/utilities/staples. Back to the old boring DCA strategy I suppose.

hightide1218

as everyone paying their fair share? how much should that be? do you know that "rich" people are already responsible for 90%+ of tax revenues in the US? the issue isn't people not paying their "fair share". the issue is politicians misspending money... we have already have: federal individual income tax, corporate income tax, alternative minimum tax (AMT), estate tax, gift tax, Social Security tax, Medicare tax, additional Medicare tax, federal unemployment tax (FUTA), excise tax, customs duties, tariffs, heavy highway vehicle use tax, diesel fuel tax, gasoline tax, alcohol tax, tobacco tax, firearms and ammunition tax, air transportation tax, indoor tanning tax, wagering tax, oil spill liability tax, harbor maintenance tax, coal tax, ozone-depleting chemicals tax, environmental tax, Superfund tax, state individual income tax, state corporate income tax, state alternative minimum tax, sales tax, use tax, gross receipts tax, privilege tax, franchise tax, business license tax, occupational tax, state excise tax, state gasoline tax, diesel tax, motor fuel tax, cigarette tax, tobacco products tax, vaping products tax, alcohol tax, cannabis/marijuana tax, insurance premiums tax, property tax, personal property tax, real property transfer tax, documentary stamp tax, mortgage recording tax, estate tax (state), inheritance tax, severance tax, minerals tax, natural gas tax, oil extraction tax, timber tax, unemployment insurance tax (state), local income tax, local earned income tax, local services tax, business gross receipts tax (local), business privilege tax (local), local sales tax, hotel tax, lodging tax, tourism tax, restaurant tax, prepared food tax, amusement tax, admissions tax, utility tax, cable TV tax, telecommunications tax, water utility tax, electricity tax, solid waste tax, stormwater fee, special assessment, improvement district tax, community development district tax, vehicle registration tax, vehicle license tax, vehicle excise tax, motor vehicle rental tax, car rental tax, boat registration tax, aircraft registration tax, luxury tax, capital gains tax, sin tax, sugar-sweetened beverage tax, plastic bag tax, environmental tax, carbon tax, congestion pricing fee, transportation improvement fee, parking tax, fuel surcharge tax, special fuels tax, hazardous substances tax, hazardous waste disposal tax, waste tire fee, e-waste recycling fee, recycling tax, pollution control tax, emissions tax, superfund chemical tax, harbor maintenance tax, customs processing fee, customs merchandise processing fee, regulatory fees and assessments, etc. and you people want the government to tax us even more... make it make sense...

No_Coat4977

H.R.1 also seeks to abolish Corporate Alternative Minimum Tax, AMT. Would be a huge benefit for any Berkshire-style conglomerate (although not BRK itself, they've had an exemption for a long time). Personally? I think MSTR and BTC Mining firms have the most to gain, along with energy sector stocks (LNG, Oil) NFA, DYOR. Best of luck! (Long MSTR, U.S. LNG).

jaezien

Of course, thats why my believe is 10B in pure profit, btw look at AMT which is kinda the same thing except they build terrestrial towers instead of sats, they have quite a high pe ratio, and their margins are quite decent as well. Also, 200B for a dividends company is not too out of the realm of possbility, especially got a service based company that has recurring revenue. Keep in mind they are serving multiple industries as well (btw google is also going to start using ASTS services also). I do get what you mean tho, but for now its still in its growth stage so share price might still go up significantly until it hits that ceiling. I wouldnt believe if someone said 1T mkt cap either, but 200B ish is quite reasonable imo.

ThePriceOfFreedom_1

Glad u asked. I'm Chinese American and I can tell byd is the next evergrande group of China. Most Americans and Europeans have no idea the business practice byd uses to maintain itself in the game. They abuse workers, use fatal cheap parts, rule breaking governments subsidies, huge AMT of debt, no fsd. These info are only available to America s if they watch news specifically exposes the reality of China. Unfortunately majority of y'all don't speak Chinese so these channels will never be recommended to y'all.

ThePriceOfFreedom_1

I always wait for a green day to sell. In fact some times I would sell 4 and then 4 tomorrow on a stock like Tesla. U never know how hard it can go up without logic. And I mainly do weeklies haven't done monthly yet. I think selling 2 weeks out is what some pros are doing to get an insane AMT of premium upfront and then buy it back the end of the 1st week. But I personally haven't tried it myself

IntrepidFarmer5666

They asked all the AI models to make a stock portfolio and there is one stock that I saw in just about every single one with high conviction which is AMT so I just converted half of my Roth to it after having limits set at 210 for a month now 

hsfinance

Let's not go into motivations and tax fraud, let's just be clear about numbers. Motivations vary from person to person and some may commit fraud whereas others may just pay. First of all it is not 70% Secondly, it is not even 54% for the first million Third, itemize. The AMT rate used to be 28% and mentally I know that's the lowest I could get whatever tricks or fraud I tried :). Haven't tracked AMT since last tax cuts Next, if you are earning a few million short term every year thus paying 54%, move to long term if your earnings do not dip. Also Roth, Ira, mega backdoor Roth, mortgage interest, property taxes - although each of them has a limit. And maybe exit California if you make 20m a year ;) saving 2.6 m on that After all that, sure tax fraud :) (not a formal advice)

LearningIsGoal

They are already selling stocks quickly. Check the insider trading on QBTS and IONQ some directors emptied 50% positions. Also IONQ executive sold his shares to "cover AMT" on ISO maturity. But any startup with confidence in its futures would do whatever it took to keep shares. There are entire agencies that give out low interest loans to protect shares for up and coming starting. Even if you thought you could 2x the company holding onto those shares with a low interest loan is so worth it. And this was weeks ago since IONQ has climbed and he lost a decent amount of money just not pursuing the loan to cover with shares as collateral... banks and institutions dont want to touch these companies at their current valuationg. Such a bubble

cdude

Holding for 1 year makes the gains long-term, taxed at lower rates, with 20% being the highest bracket. Short term is taxed at ordinary income rate, which the highest bracket is 37%. So calculate a 17% saving on your option's value and see how much taxes you could have saved. If you exercise now and hold for 1 year, then you'll be taxed at long term when you sell. You'll have an "unrealized" gains of $1.8 millions because you haven't sold yet. However, under AMT, that is taxable. If you had exercised early on as soon as you received new grants, the unrealized gains would have been close to $0 or extremely low, costing no taxes.

row-row-row_ur_boat

Thanks for the reply, I think I messed up by not exercising, but thought it was the right thing to do. “So did you not believe in the company, or you didn’t know that you should have been exercising your options?” I don’t follow, I did believe in the company that’s why I picked options and not RSU’s. Why should I have been exercising as I went? I thought holding options would be better if the price increased substantially. “Because your holdings could have been all long terms by now” I don’t follow, I guess I messed up. “Exercising all of it now would definitely trigger AMT even if you aren’t selling” So I should have exercised and not sold? “So ask yourself if you think the stock price is likely to drop around 35% in the next few years.” I think it will go up and down my 35%, it seems to be very volatile. FYI, I’m currently at 180k/yr and the original options were 50k/yr, plus I’ve gotten some bonuses that I chose options. Company is Tesla if that helps.

cdude

So did you not believe in the company, or you didn't know that you should have been exercising your options? Because your holdings could have been all long terms by now. Exercising all of it now would definitely trigger AMT even if you aren't selling. And selling would just be short term, taxed at ordinary income rates. Without knowing your income, i'm guessing you're going to be solidly in the 30-ish percentage, so most likely you're going to pay 30% in federal, plus 3.8% in NIIT, plus state tax if applicable. So ask yourself if you think the stock price is likely to drop around 35% in the next few years. If you are sure then might as well sell everything.

tonenyc

$AMT

Cruezin

Dunno why you're getting downvoted. Just reddit being reddit I'm guessing. The last paragraph explains why I agree with you, because I sure as shit don't see it. Of course, the difference between me and the billionaires being I have job income, and live in a state with no income tax; the inability to deduct property related stuff hurt even more since that's a main way state and local governments fund shit and they're relatively high. AMT is more complicated and I'm not here to tell the world any more than I've already said, lol. I guess we'll see where it all lands though.

Illustrious-Jacket68

So you then would be supportive of the current talks about the raising of taxes / new tax rate that the republicans put on the table for people making more than 2MM? What would you propose specifically? I'm talking income tax as if you're going to point at billionaires, they do not have income. so, that's separate from your argument of lower taxes on the wealthy. I'll admit that I make a pretty decent compensation. The TJA reduced one tax and because of the SALT limitation and AMT, it negated and roughly speaking, I pay about the same amount of taxes. If you look at AMT prior to the current tax act, you'll see that AMT added back in the SALT and other deductions. So, if you're saying that the 400-2MM range is getting a tax break, in NET and actual terms, that's not necessarily correct. Spoke with my tax preparer and he said that generally, that was the case for the people in that range.

Stitch426

If you like cycling through the same exact stock by buying it at a low or average price and selling it near its highest point- sell specific lots and not the whole position. If you get in at a good cost basis and you keep it, it helps anchor your average down if you decide to keep it as a long term holding and quit selling off shares. So if you buy at $9, $10, $11, and $12 and are waiting for it to hit $13- sell anything green above your lowest position. If you think the stock will plunge below $9 with new info you have- sell anything green period and buy again at $8 if you were right. If you were wrong, buy it when it makes sense again or move on to another play with a different stock. If you always sell a green position, you don’t have to worry about wash sale rules at all. Selling all your positions without first making sure none are in the red is where you can flub up. Even if your cost basis is green, all your positions may not be. With KO, BRK.B, TMUS, PGR, AMT, and some others this is what I’ve done. If it hits near its recent highs I can sell it then or hope it breaks out and keeps going upwards. If I do sell everything but my lowest position, then I have buffer room to sell if it does start a cycle down or I have buffer room to ride the wave if I think it’s just a slight pull back. Every now and then my lowest position that I kept becomes my new highest position. But because it was already pretty low to what it used to be, it’s not that high above my new lowest position. But with swing trading you will never get max gains. You’ll never get the lowest price of the day/week. You’ll never get the highest price of the day/week. You just gotta know when it starts a real cycle downward and it’s not just an off day. As long as you see yourself continually getting a lower cost basis on whatever you’re cycling and you’re getting better at getting out at the highs- you’ll avoid the wash sales and make some nice profits.

RPO777

Yes. And tariffs are about the worst possible way to make it happen. If you're talking about Trump's proposal, I'd be all for it. I'll believe a Republican controlled congress passing a real tax on millionaires (or better yet, a higher capital gains tax) when I see it though. Billionaires hardly make any money through income, almost all of it is capital gains, so while an increased income tax in the $450,000+ category would be great, I would support a higher capital gains tax, or a switch to the AMT (Alternative Minimum Tax) formula to include capital gains to better capture billonaires' taxes.

greenpride32

None - I buy them based on financial performance. But stuff I use maybe not everyday but often would be - MSFT AMZN AMT NFLX GOOGL META MA NVDA AAPL

african_cheetah

Capital gains - you pay tax on it when you sell I.e the gain is realized. Now if you get a huge payout from IPO, there’s AMT and you should talk to a tax lawyer. You can get a loan on your stock as collateral, but if stock goes down, and you don’t pay, stock gets sold to pay for loan. If you need money, sell a portion, pay the capital gains 15% which is likely lower than your normal income tax bracket.

bfreis

You might need to talk to a tax professional. There are different types of employee stock options from a taxation perspective (ISO, NQ). In general, my understanding is that for NQ the difference between FMV and the strike is considered income for tax purposes, making your cost basis the FMV upon exercise, and they you'd lay long or short tax gains on any capital gains above FMV upon sale of the shares. For ISO, there's a holding period to avoid some taxes, or trigger AMT otherwise. But I'm not sure of the details. A tax pro can help.

PantsMicGee

If you want to pick good entries and exits to your stocks, you'll need very little else than Auction Market Theory (AMT) and Volume Price Analysis. Auction Market Theory (AMT) is a trading philosophy that views financial markets as continuous auctions, where buyers and sellers interact to determine the fair value of assets. The theory focuses on understanding how imbalances in trading activity, influenced by events and market participant behavior, lead to price discovery and ultimately, a balanced market where the most trade occurs. 

ProgrammaticallyHip

Yes, they are safer in a recession. But ASTS is down 11% in a month and VZ/T/AMT were down 6.5, 5.5% and 5% at one point respectively during this recent volatility. Those stocks (sans ASTS) are definitely more resilient but don’t kid yourself — each of them could take a steep haircut if we get a nasty bear market. And ASTS would likely get crushed.

Ashleynn

MNO's and things related to them are considered safe havens for a reason. VZ, T, and AMT haven't avoided the majority of the volatility over the last month for no reason. ASTS has managed to remain fairly stable in that time as well. Even in a rescission people are going to pay for their cell phones. It's one of the few things that will more than likely keep getting their money no matter how bad things get. If things do get bad enough that people stop paying for their phones, we have much, much bigger issues than any stock price.

megabyzus

I'm assuming this is part of your compensation--a trick to limit salaries for 'startup' employees. In the unlikely case your company has a clear and confirmed IPO plan then you still need to think about it. Even in the case of IPO, there are usually strict limitations of who and when the shares can be sold in the market--basically freezing you out until the main funders (usually VC--angels have already been comp'd by VC) and officers cash out before you're allowed to. When your turn comes, chances are the shares have dropped value far below the value yours were originally given. Which leads to the impact of Alternative Minimum Tax (AMT) on your taxes. You may be taxed on the inflated original value of shares given to you. Even if the share value drops (post-IPO), you sell at a loss and harvest tax losses it might take a few years to get your losses back since you can't get back all your losses in a year since there's a limit to annual tax loss harvesting--the remaining losses carry forward to future years until they're recouped. To summarize, unless your inside a unicorn, then USUALLY this doesn't benefit you. There may be exceptions but I haven't seen them.

reaper527

> Stocks I previously considered shitty are fairing well in this market (AMT, TTWO for example) meanwhile if you owned last years quality names theres a good chance you've been cooked so far. Go figure. things are cyclical. those companies getting crushed right now will probably rotate back into favor and make jumps at some point over the summer/fall (especially if the tariff stuff gets walked back or at the very least stabilizes and the fed drops interest rates).

DrBuschLight

Stocks I previously considered shitty are fairing well in this market (AMT, TTWO for example) meanwhile if you owned last years quality names theres a good chance you've been cooked so far. Go figure.

vanisher_1

AMT doesn't tell the market how it should behave, there will always be manipulation in the market, but it gives you a framework to extract information from the market to avoid being taken hostage of such manipulations compared to simple Price Action and SMC methodologies.

vanisher_1

Are you still of the idea that is a complicated Framework? I see AMT as a clear framework for trading, less abstract and complicated than simple Price Action (Abstract) and SMC (Complicated Terminology)

Bagel_Technician

You should look into AMT in regards to exercising stock options The government is already taxing unrealized gains lol

BobtheChemist

Buying a small amount (,1-4% of portfolio) of REITS has done well for me. You could look at O, ADC, WPC, CCI, AMT, VICI, KIM, FRT, GTY, DOC, and many others, most are 4-6% yield, so great for making some income.

refreshpreview

* **IT**: Chipmakers (AMD, NVDA) suffered due to weak demand, but Intuit (+8.55%) outperformed. Outlook: Continued volatility as growth-driven tech faces pressure. * **Energy**: Renewables (ENPH -11.6%) fell, while oil majors (CVX +1.08%) held steady. Outlook: Geopolitical risks to drive performance. * **Consumer Discretionary**: Tesla (-13.27%) dropped, Disney (+4.73%) gained on positive streaming/park data. Outlook: Retail/auto earnings to shape trends. * **Healthcare**: Biotech (MRNA -12.86%) lagged, but Lilly (+5.37%) and Humana (+5.67%) rose on strong fundamentals. Outlook: Clinical updates as key drivers. * **Financials**: Insurers (MET +6.38%) and Berkshire Hathaway (+7.33%) led gains. Outlook: Fed rate comments to impact sector sentiment. * **Industrials**: Defense stocks (RTX +7.87%) soared; mixed results for equipment firms like CAT (+1.15%). Outlook: Infrastructure spending in focus. * **Utilities**: Renewables (CEG -11.92%) struggled; traditional providers (SO +1.57%) gained modestly. Outlook: Pricing/weather as key factors. * **Real Estate**: REITs (AMT +7.35%) rallied on strong demand. Outlook: Interest rate changes could affect momentum.

Hot-You-7366

go long healthcare and property like CCI and AMT boys

KinnickHawk

Why does RH have a random spike (like on AMT after hours today)? Wtf is that?

xSmeckleDorfedx

-40k last week bad. You still got 13.5k, so yolo Call on AMT, ZM, and CAVA.

rackoblack

There are some REIT ETFs. I have about 5% in these REITs, all non-home-mortgage - O, CCI, AMT and STAG. Is this all the money you will have invested or just some of it? Makes a difference. How long a timeline? Also makes a difference. If this is most of your invested money right now and you have a 30+ year timeline to when you'll be spending it down, I would say go 80% VTI, 15% some REITs and 5% some other holding that weathers downturns better. In my case I chose oil & gas MLPs for that last bit.

Straight_Turnip7056

I've been looking at real estate names for quite sometime, especially after the failed rates meeting. The top names, EXR, Prologis, AMT etc. aren't cheap (looking at PB, dividends, debt), nor they're trading down after November.

ThickConsideration92

Hey purple! Good questions So I asked DeepSeek and Chat GPT about that, as I figured the bonds were more geared toward institutions than retail, and it seems I was right Here’s what the bots said: ### Can Individuals Buy These Bonds? Private activity bonds, such as the ones approved for Comstock Fuels, are typically issued to institutional investors or large financial entities rather than individual retail investors. These bonds are often sold in large denominations and require significant capital, making them less accessible to individual investors. Additionally, the issuance process often involves investment banks and underwriters who facilitate the placement of these bonds with qualified buyers. However, individuals may indirectly invest in such bonds through mutual funds, exchange-traded funds (ETFs), or other investment vehicles that specialize in municipal or private activity bonds. These funds pool resources from multiple investors to purchase bonds, making them more accessible to individuals. — ### Expected Return on These Bonds The return on private activity bonds depends on several factors, including: 1. **Tax Status**: - Qualified private activity bonds (like the ones issued by Comstock Fuels) may be tax-exempt at the federal level, meaning the interest earned is not subject to federal income tax. However, they may still be subject to the federal alternative minimum tax (AMT). - If the bonds are taxable, the interest earned will be subject to federal and possibly state income taxes. 2. **Interest Rate**: - The interest rate (or yield) on these bonds is determined by market conditions, the creditworthiness of the issuer, and the specific terms of the bond. Municipal bonds typically offer lower yields compared to corporate bonds due to their tax advantages and lower risk. 3. **Credit Risk**: - The creditworthiness of Comstock Fuels and the project being financed will influence the bond’s interest rate. Higher-risk projects may offer higher yields to attract investors. 4. **Market Conditions**: - Bond yields are also influenced by broader economic factors, such as interest rate trends and inflation expectations. — ### Key Considerations for Investors - **Tax Implications**: Investors should consult a tax advisor to understand the tax-exempt or taxable status of these bonds and how they fit into their overall tax strategy. - **Risk Assessment**: While private activity bonds are generally considered lower risk than corporate bonds, they still carry some level of risk, particularly if the project being financed faces delays or financial challenges. - **Liquidity**: These bonds may not be as liquid as other investments, meaning it could be harder to sell them before maturity if needed. — ### Summary - **Individuals**: Typically cannot directly purchase these bonds but may invest indirectly through bond funds or ETFs. - **Expected Return**: Depends on the bond’s tax status, interest rate, credit risk, and market conditions. Tax-exempt bonds may offer lower yields but provide tax advantages. - **Risk**: While generally lower risk, investors should assess the specific risks associated with the project and issuer. If you’re considering investing in such bonds, it’s advisable to consult with a financial advisor to evaluate how they align with your investment goals and risk tolerance.

midweastern

I really like your portfolio, especially how you're getting some international exposure in some of the few companies worth having a position in. You are a little too heavy in tech imo. I'm not sure I would sell any of your existing positions there, but I wouldn't add any more to them without first investing into another sector. Personally, I would choose an industrial or consumer defensive stock. I'm also not a fan of UNH. I would replace it with a pharma giant like PFE, GSK, or GILD. Alternatively, maybe some sort of real estate like DLR, AMT, or PLD.

Straight_Turnip7056

Is the 15-20% drop in real estate stocks justified? O, AMT, Vici all are down a lot - even after adjusting for dividends, if any. As if, 0.5% rate cut and 0.25% cut makes that much difference to their EPS?

greenpride32

The more successfull businesses tend to own their own properties as it obviously helps with margin and profits - take your COST and HD for example. I work in tech and all of big tech builds their own internal software tools, they don't buy it from a 3rd party for the same reason. So yes I'd agree that their tenant list is not comprised primarily of tier A clients, perhaps not even B. But if you were to take a distrubtion of number of brick and mortar retail in in A/B/C/D tiers, the majority are going to fall in B/C/D. I've never really thought of it as culty. But you probably see it mentioned often because the yield is high, the share price is moderately stable, and dividend amount has consistently increased for over 20 years. How many other REIT can you find me that fit all of this criteria (even you were to soften the duration)? I own other REIT's with much lower dividend yield (AMT/CCI/DLR/EQIX) but more capital appreciation. It just depends on what you need. If it's income, O has been a fairly reliable source.

neverstopprog

Anyone that is 100% in a single stock should probably go get some help. So I doubt people are missing out on the bull market in totality. If you think an indicator of "good stocks" is uninhibited growth with zero pullbacks, I have a bridge to sell you. I'm not making a comparison between NVDA and ASTS in terms of long term potential, but looking at NVDA's chart below would you have been happy if you sold in 2018 when it had a 50% pullback? To clarify, ASTS is not going to be NVDA. But could it rise to the levels of an American Tower (AMT)? It's a possibility. "The big money is not in the buying and selling, but in the waiting". I forget which book it's in, maybe "The Psychology of Money", but at one point they talk about risk tolerance. I'm going to paraphrase here... If you test multiple strategies with historical data the best strategy for the highest end net worth is actually going all in on a handful of smaller-mid cap stocks. If they crash and burn, you repeat on a different handful. Eventually you'll get 1 or 2 stocks like NVDA that provide most of the gains you'll ever have and you just let them ride and continue going all in on new stocks with new $. They go on to say most people can't deal with the psychological aspect of losing all their money or dealing with the large swings. So for 95+% of the people diversity is the key to sleeping sound. You can't just throw shit at a wall though, you need to make informed decisions on the handful you pick. So if you had a good reason based on research to go "all in" on ASTS, and not just "yolo" then unless the fundamentals of your analysis have changed you should let it ride. If you bought at $38, you followed the FOMO. https://preview.redd.it/o8f9bdtgq15e1.png?width=902&format=png&auto=webp&s=d1720469c78882f20632cdebe9996f84b6c76a2e

BroasisMusic

Most people using muni's are using them to avoid AMT tax in particular, since when you're subject to AMT your tax brackets basically start out a hell of a lot higher at dollar $1. You're probably not in the bracket where you will save more than the difference between the yields of the normal bond funds and the muni funds, and if you were.... you'd probably know it.

thorsbane

Hahaha. Ever heard of what happens when exercised ISOs and AMT meet? Better believe you can owe taxes on money (theoretical gains) you didn’t actually realize. After dot com crash people were throwing themselves off of buildings because taxes were due on those exercised shares but prices were in the toilet. Losses take years to claw back, unlike those supposed gains.

No_I_in_Threes0me

But but a lot of trumps losses were not “capital” in nature, they were flow through from various entities. No doubt he was using what a lot of RE individuals do and accelerating depreciation through cost segregation methods and possibly bonus depreciation when available or from looking at his 8825 and 4562 on old leaked returns, using a 200DB method to take a bunch up front (likely losing some to AMT due to doing so) but it’s not a capital loss. Doing so lets him pay zero tax, hold onto his cash in doing so, and probably funding a lot of it through debt, so in his mind it’s like free money. A good example of this is his 2018 K1 showing debt of 574M, but he still has about 600M of tax basis capital account also, so there is money on both his side and debt to make it all happen. It’s all a shell game for money in that amount and how to move it around to minimize taxes.

cloud7shadow

I also wanted to have some REITs in my portfolio since I dont own a real property. I couldnt find an ETF which the companies I liked so I picked 6 Individual REITs: IRM, O, AMT, STAG, PLD and WPC

HiroPr0tagoni5t

Honestly wasn’t aware of American Tower, but agreed much better comparison👌🏼and great point regarding operating regionally versus globally. Using AMT’s current market cap of ~$103B as a benchmark, this still gives a 10x potential upswing for ASTS even before adding in the non-regional factor. Not a 100 bagger by 2025, but imo that’s an unrealistic expectation for anything that isn’t a bio stock.

BurritoSupremeBeing

I think it would make more sense to compare AST to American Tower, since AST is basically towers in space. Even then, AST will operate globally, whereas AMT, T, VZ, whatever, are all regional, so AST's upside isn't limited in that way.

mkrugaroo

I have limited myself to 3 moonshots: ASTS - one of a kind space to cellular technology that is now entering the scaling phase. Insane margins, and partnerships with operators that own the spectrum they can operate in. The market is already there but will explode even more with IOT and autonomous/robots driving connectivity especially on the move. Market cap 7.8b, 2035: 100-400b (using AMT as reference, and depending on percentage of the 2.4b partner MNO subscribers they capture) RKLB - Reusable rocket technology akin to SpaceX especially when their Neutron rocket starts flying. But what makes this company more valuable by far is its space services division. They design, manufacture and operate payloads for other companies. Opening up space to companies without the necessary expertise. This means it's not a launch and forget business, but RKLB earns recurring revenue for the lifetime of the payloads Market cap 5.4b, 2035: 200b (current SpaceX market cap as reference, with massive growth in the space market) AUR - Self driving modular technology platform. Their focus has been on trucking which is an absolutely massive market. They earn revenue per mile driven. But their solution can be mounted on everything from a normal car to a class 8 truck. I believe we will soon see them start entering the passenger market. Market cap 10.7b, 2035: 100-300b (using Uber as reference, and the global trucking market alone is 2.6 trillion industry and a 800 bil industry in US. This excludes any potential from passenger/taxi) I also believe and have small positions in IONQ and OKLO

Designer_Giraffe3752

Indirectly DTCR (Data Center & Digital Infrastructure ETF) is a sticky play on the growing thirst for data centers and their upkeep. While not the cheapest, 0.5 expense ratio isn't too bad given the specialty theme. All the big names make the list such as VRT AMT CCI DLR EQIX.

Syab_of_Caltrops

Was just thinking: If SpaceX and ASTS can successfully deliver low orbit cell service, isn't AMT an easy short?

greenpride32

First of all, 10% is considered the base benchmark by most investors because it's a "given" return by going with the broader index. I use a basket more heavily weighted towards individual stocks with the goal of beating 10% - and many of my picks have (AAPL MSFT AMZN NVDA CRM AMT MA MCD to name a few). This is also the goal of any investment professional - because well if you can't beat the index, you might as well join it. SP500 can be flat for 10 years plus (with ups and downs in between) - so of course it's not viable to leverage it. Here's a fun fact - 40% of the SP500 gains over the past 100 years is from dividends. How is that possible? Because many within the top 500 are just stable companies with little growth, but profit enough to return a dividend. They have very slow capital appreciation. It's primarily the upper tier companies that carry the capital appreciation of the index. Those are some of the stocks people target when trying to beat the index - other stocks would be up and comers before they make the SP500. For the 10% long term to be at risk would mean a substantial erosion of the US economy - could it happen? Of course. But I don't live my life in fear of doom and gloom. You're already getting 40% as long as the top 500 companies are capable of making their dividend payments. Faltering companies are rotated out and replaced by more stable ones - so it's really more macro issues that are going to cause any sharp declines. You can have difference of opinion on many things such as which are next stocks to go up/down. But arguing against 100 years of actual data is a difficult sell. Where do you think a substantial amount of 401k millionaires come from? Not all of them would be considered high income earners - but they invested in the broader market and took advantage of compounding (roughly double your money every 7 years at 10% average annual rate of return).

rackoblack

I have REIT in our IRAs and taxable both. 10% of our IRAs, 6% of net worth (less house). Haven't looked for correlation with stocks. ONly been in them for a year, once the RE decision had been made to shift to a bit more income and a bit less equity (more real estate, that is). I also bought some bond funds for the first time ever around then. Long: O, AMT, CCI, STAG (and MCD which some consider REITish)

BigDipper0720

I have just over 10% of my total portfolio in REITs, all kept in my IRA I keep them for their higher than average yield. Since bond yields have returned to more reasonable levels, some of the money I would have put in REITs have gone into corporate bonds. Anecdotally, I have seen the lack of correlation with the rest of the portfolio, but bonds tend to be similarly un-correlated. The past 12 months have been a wonderful time to own REITs. I own no Office REITs; my holdings are DOC, PLD, ARE, AMT/CCI, EQIX, and WY.

greenpride32

>There is no such thing as a stock which is a great opportunity for future gains if everything is peachy Okay so I can tell you are just a short term investor who trades in and out. I won't brag about my gains, but I'm a long term (8-10+ years) holder of many stocks were the outlook is rosy and then just keep growing - and I keep adding over time.. You don't just get to $3t market cap overnight. Holding AAPL AMT MSFT GOOGL AMZN NVDA MA CRM and they have grown almost every single year - I'm not exactly sure when you could say things weren't peachy for them outside of macroeconomic issues. NKE stock took off during the pandemic primarily because their sneaker sales soared. Now their sneakers are out of favor. I don't invest in trends. Companies rely on MSFT/GOOGL/AMZN public clouds for their own mission critical businesses - they can't just exit those platforms on a whim, but consumers sure can go to ASICS and New Balance and Salomon and Lululemo and they have. But in any case numbers (top line and more so bottom line) is what drives the stock price, not any analyst ratings or feelings or beliefs.

greenpride32

Earlier in my life I used to lose to the broader market index, because I would buy stocks and sell them after a little run up of 10-20%. But those were my winners - add in my losers and I'd be under the 10% SP500 average annual return. Later, I realized that many of the stocks I bought were well ahead in the long run - sure they had their ups and downs - but in the long run the price was substantially higher. Then I started to just hold for long term and crushing SP500. Some of the stocks I traded in and out of - MSFT ADBE CRM NVDA NFLX AMZN AMT MA AAPL ORCL - I ended up buying later at much higher prices - but then holding them long term. Just imagine if I kept my original shares and kept adding. But you live and you learn. I also cut down on more speculative stocks and just stuck to high growth / large moat / best of breed in their space type companies. If the more speculative stock turned out to be more than a flash in the pan, I might buy some with less total return but also less risk.

bananastock

If GTIs plan with AMT and circle k came to fruition, watch out.

Rea-sama

I don't think you get it. In addition to Africa, there is still a \*ton\* of value in having supplemental coverage from space. One cell tower costs roughly $100k to build. Some $ per year to maintain. On the edge of a city or town, you might have a few thousand people going in and out of a 10km² area. Not a lot, but enough as a mobile operator that you have to have *some* coverage there to say that you have "the most coverage in the nation." Now you might need or have a few dozen or even hundreds of these unprofitable/low margin assets. One ASTS satellite costs 20 million. In aggregate once the constellation is up, each satellite will replace *far* more than a few hundred low-margin cell towers on the ground. They will literally be money printers in space. Plus, you can now up-sell another plan: Introducing "The Ultimate Coverage Plan: No Dead Zones Planetwide" for possibly $20-50 more in rich countries like the US. Have you ever driven a car and your signal goes out on the highway? There will be no more of that too with ASTS. It's not going to replace dense urban cell towers, but anywhere a cell tower doesn't or barely makes economic sense (which is a lot of areas), ASTS coverage is invaluable. That's why it's worth 7 billion. The potential is just that great. Look at American Towers if you want another example of why network operators would want to pool resources for low density areas and don't want to care about the infrastructure: it's basically ASTS on the ground. At much lower margins, $AMT is worth 100 BILLION dollars.

kylestoned

My worst trait is selling too early, and then continuing to look back at the ticker to see what could have been. Feels bad, man. $AMT

BoristhebIade

They should give you a strike price with the stock package especially if they’re going to IPO next year…. Anyways man, my advice is to have your partner stay at the company as long as she can until the IPO and vest as much as those options as she can. Not sure if you’re based out of the US but she doesn’t need to invest any cash until she decides to leave the company and then you’ll have 90 days to exercise your options. Really depends on how much faith you have in the company and if you’re still employed and they IPO it should give you more data on performance to see if it’s a good investment for you guys. Just wait till the IPO happens. You can start buying the stocks in smaller amounts over time to minimize an AMT tax and hold options for over a year and then sell to avoid capital gains tax. You also always have the option of selling your options and cover the cost of shares with by selling shares and you don’t have to put any money into it out of your own pocket. This is a complicated topic as well since we have limited information on where you live, where the company is and who they are etc

GEEZES007

AMT is an early investor in ASTS and Ed Knapp (AMT's CTO) is part of their board of directors. Satellites won't replace towers, but will be an important part of the telcom infrastructure. AMT is investing in the future.

waba82

I am invested in American Towers (AMT), which provides land based cell tower service. Is there any projection how cell to satellite might affect these in the future?

Geldan

They'll have to realize the gains to pay the AMT, or, if they're RSUs then 35% will be sold before they even see them.

Eastern-Joke-7537

I think there is a corporate AMT now

ftntvg

Even the most egregious duopolies like Visa and MasterCard have at most 60-65% operating margins. AMT (another duopoly, surprise surprise) has a 65% EBITDA margin. No mature company in the fucking world will ever have 95% EBITDA margins. You'd have to be Adobe, fire every single employee, pull out another 5% of leverage out your ass and somehow continue existing as a company. I worked in a hedge fund for two years, and this is one of the dumbest posts I've had the fortune of coming across, even for WSB standards. This company screams "dogshit SPAC that popped because it was a crowded short." But I digress, if you think ANY company can have a 95% EBITDA margin, please point me towards your plug and I would love to sell you a bridge